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Proposed Manufacturing Regulations: New License "Type N"

The California Department of Public Health, Office of Manufactured Cannabis Safety, released proposed regulations on April 28, 2017 that would create a new license type, the “Type N” license, for “manufacturers that produce edible products or topical products using infusion processes, or other types of medical cannabis products other than extracts or concentrates, and that do not conduct extractions.”

The manufacturing licenses established by Medical Cannabis Regulation and Safety Act (MCRSA) only address manufacturers that engage in extractions, and set forth two types of licenses, Type 6 for extractions using non-volatile solvents, and Type 7 for extractions using volatile solvents.

Many manufacturers do not conduct extractions, but rather purchase cannabinoid concentrates from other manufacturers and incorporate the concentrate into their own products.  Thus, this new license type has been proposed in the draft regulations.  The new “Type N” license type for infusion-only is one of the types of licenses for extraction-related operations overseen by the Office of Manufactured Cannabis Safety.

 

§40118. Manufacturing License Classifications.

The following license types are available from the Department:

(b) “Type N,” for manufacturers that produce edible products or topical products using infusion processes, or other types of medical cannabis products other than extracts or concentrates, and that do not conduct extractions. For purposes of section 19328 of the Business and Professions Code, a Type N license shall be subject to the same restrictions as a Type 6 license.

The ISOR for Section 40118 explains the reasoning behind the new “Type N” license.

“Manufacturing License Classifications. The Act establishes two license types for manufacturers – Type 6 for manufacturers using nonvolatile solvents and Type 7 for manufacturers using volatile solvents. (Bus. & Prof. Code §19300.7 subd. (k) and (l).) However, Business and Professions Code section 19302.1(f) allows the Department to create additional license types as needed. This section is necessary to make specific the Department’s licensing authority.

Subsection (b) creates a new license category of “Type N” for manufacturers that only infuse cannabinoids into a product formulation to produce a cannabis product. The manufacturing licenses established by the Act only address manufacturers that engage in extractions. Many manufacturers do not conduct extractions, but rather purchase cannabinoid concentrates from other manufacturers and incorporate the concentrate into their own products. Establishing a new license type for infusion-only is reasonably necessary for the Department to appropriately oversee licensing operations.

This subsection also provides that holders of a Type N license are subject to the same additional license restrictions as a Type 6 license. As discussed above, this provision is reasonably necessary to conform this proposal to the intent of the Act.

The above information is provided for informational purposes only and is not intended as legal advice.  Please contact a lawyer for legal counsel.

If you would like legal assistance in advocating for changes to the proposed regulations, please get in touch with us.  If you are interested in a legal consultation about the Type N license, the draft medical marijuana regulations proposed by California’s cannabis regulatory agencies, and compliance with California’s cannabis laws, please contact the Law Offices of Omar Figueroa at (707) 829-0215 or at (415) 489-0420.